What is Short-Term Renting?

Short-term renting refers to the practice of renting out a property or a portion of a property for short durations, typically ranging from a single night to several weeks. In New Zealand, this concept has gained significant traction since platforms like Bookabach (launched in 2000), and Airbnb (launched in NZ in 2015) revolutionising the way people travel and stay.

For homeowners, short-term renting offers a flexible and potentially lucrative way to generate income from their properties. Whether it's a holiday home in Queenstown, a bach in the Coromandel, or a spare room in Auckland, short-term rentals cater to a diverse range of travellers, from international tourists to Kiwis exploring their own backyard.

Why Short-Term Renting is Popular in New Zealand

New Zealand's appeal as a global tourist destination plays a huge role in the popularity of short-term rentals. The breathtaking landscapes, adventure activities, and cultural experiences attract millions of visitors annually. Many of these travellers seek accommodation that offers more space, privacy, and a local touch compared to traditional hotels.

Short-term renting also aligns well with New Zealand's property ownership culture. Many Kiwis own second homes or holiday properties that sit vacant for parts of the year. By listing these properties for short-term rental, owners can offset costs like maintenance, rates, and insurance, while keeping the property available for personal use when needed.

The Difference Between Short-Term and Long-Term Renting

Short-term renting differs from long-term renting in several key ways:

1. Duration: Short-term rentals are typically booked for days or weeks, while long-term rentals involve fixed-term leases of several months or more.
2. Flexibility: Short-term rental owners can block out dates for personal use, whereas long-term rental agreements usually require full-time tenant occupancy.
3. Income Potential: While income from short-term renting can be more variable due to seasonality, it often outpaces the steady but lower income of long-term renting, especially in high-demand areas.
4. Guest Turnover: With short-term rentals, there's a higher frequency of guest turnover, which means more effort in cleaning and property management.

Legal and Regulatory Considerations

In New Zealand, short-term renting is subject to specific rules and regulations that vary by location. For instance, in some areas, local councils require homeowners to obtain resource consent for properties listed on platforms like Airbnb if they exceed a certain number of rental nights per year. These regulations aim to balance the benefits of short-term renting with the impact on local housing availability and community dynamics.

Additionally, homeowners must consider tax obligations. Income earned from short-term renting is taxable and must be declared to Inland Revenue (IRD). Understanding these requirements is crucial to operating a compliant and successful short-term rental.

The Role of Professional Management Companies

Managing a short-term rental can be time-consuming and complex, especially for homeowners who live far from their property or lack experience in hospitality. This is where professional short-term rental management companies, like ours, step in. We handle everything from guest communication and bookings to cleaning, maintenance, and more. By partnering with a trusted management team, homeowners can maximise their rental income while minimising stress and effort.

Is Short-Term Renting Right for You?

If you’re a home owner in Queenstown considering short-term renting, it’s essential to weigh the benefits against the responsibilities. Done right, it can be a rewarding way to make the most of your property investment while contributing to the local vibrant tourism sector.

Whether you’re looking for a short term rental property to buy or already own and want to know more, our team is here to help you navigate the journey so feel free to reach out to us.

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